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I'm at pains not to flip my wig here.

Greece has cut its budget by 19%.
It is being asked to cut it another 6%.

No country in history has ever cut its budget that much without an accompanying economic stabilizer (such as currency devaluation).

In other words, Greece has slashed a ton already.

And it did so in a recession. Any further so-called reforms would have only killed the economy even more.

Not single serious economist has ever said this plan would ever work. And now that it hasn't worked, the dunderheads are looking for scapegoats, as though the deregulation of the taxi and pharmacy sector will save Greece.

Even the IMF in its own handbook warns against cutting the budget like this in so short of time without any economic stabilizer whatsoever.

by Upstate NY on Tue Feb 14th, 2012 at 06:19:22 PM EST
[ Parent ]
When the IMF says you're cutting government budgets too fast, you know you're in really deep shit.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Tue Feb 14th, 2012 at 06:25:08 PM EST
[ Parent ]
And yet, Greek politicians prefer this to default and control over their currency...
by asdf on Wed Feb 15th, 2012 at 01:17:27 PM EST
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They yearn to be "good Europeans"...

... and to retire to a sinecure at a global corporation.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker

by Migeru (migeru at eurotrib dot com) on Wed Feb 15th, 2012 at 03:54:15 PM EST
[ Parent ]
Greece needs some crazy Mahathir Mohammad-style guy.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Thu Feb 16th, 2012 at 08:38:18 PM EST
[ Parent ]

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